How To Manage Your Personal Finance

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Hello Hivers, it is good day for everyone of us. I believe this is going to help you a lot to manage your personal finance as I have put it to practice, it works for me.
When I lost my job for eleven months, it helps me to manage myself; when I got another employment, it helps me to save money.
The following are the ways you can manage your personal finance and enjoying yourself:
• Budget : it simply means to plan for future. You need to plan for everything; you don't have to eat all your income. You need budget to analyze your income and expenses. There should be budgeting on the monthly expenditure. Budget is one of the effect ways to manage your personal finance and also help you to cultivate the habit of financial consciousness. Budgeting helps you to gain financial freedom and financial intelligence. It gives you the power to measure and control your finances and thus your life. For someone who wants to gain financial freedom; the knowledge of budget is very crucial.
This is how I make my budgeting. I make sure that writing everything I need on paper is very important. I put everything down so that I can run over it again and again, in order to make necessary adjustment if the need be.

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• Then, I make sure I input it to my system by using Excel and budgeting apps. The importance of budgeting apps is to make it easier for me and prompt awareness of basic need.
• List of your income: it is very important to list all your incomes such as salary, allowance dividend, gift and many more. It will enable you to know the total income you are earning in a month. Ideally, your income should be more than expenses. If not, you should cut down your expenditure or work smart to increase your income.
• List of expenditure: identify primary need for every month such as utility bill, telephone bill, foods, grocery, transportation fee, rent, health insurance, children and school fees, and many more. All these fixed expenses are to be paid every month. What I do most times is getting the figure of all my fixed expenses and paid all at once.
• Miscellaneous Expenses: You need to put aside miscellaneous. This has to be among your monthly expenses in case anything you did not plan for occurred. There was a time I had visitors for three weeks which I did not planned for. It was miscellaneous expenses that helped me. Either it occurs or not, you need to put it down.
• Invest your saved money: putting your money in the bank will not yield huge interest. I have local investment where i use POS machine here to do business and Trading. Am planning to make these my businesses big and also have opportunity for new ones. Therefore, you need to invest your saved money and let it grow.

If, Your Total income should be greater than your total expenses: this simply means you are making positive result in your savings. This will allow you to do more business with your savings and have surplus in your account.
If your Total Income is greater than your expenses: then you need to seat back and adjust your expenses. This simply means you have a deficit budget. If you continue like this you will end up borrowing money to meet up with your expenses.

Always be careful for extra expenses that is the reason I talked about miscellaneous. Your extra expenses should not more than your miscellaneous. Make sure you keep your miscellaneous at the lowest possible level. You don't need to buy expensive watch once you don't really need it. Buy the major things you need.



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